Answer:
No entiendo inglish ajaja
Answer:
Gasoline is a normal good
Explanation:
Normal goods are goods that are goods whose demand increases when income increases and falls when income falls
Inferior goods are goods whose demand falls when income rises and increases when income falls.
Because the demand for gasoline falls when income falls, gasoline is a normal good.
I hope my answer helps you
Answer:
Risk free interest rate is 5%
Y is 15.5% at a Beta of 1.5
X is 0.29 when Y is 7%
Explanation:
Risk free interest is 0.05 which 5% as given in the equation
The average expected return is given by Y
Y=0.05+0.07X
Since Beta is the same as X, when equals 1.5,Y is calculated thus
Y=0.05+0.07(1.5)
Y=0.05+0.105
Y=0.155
Y=15.5%
The value of Beta at an average return of 7% is computed thus:
7%=0.05+0.07X
where X is the unknown
0.07=0.05+0.07X
0.07-0.05=0.07X
0.02=0.07X
X=0.02/0.07
X=0.29
The scenario illustrates that the Beta, which is the risk of investment and the Y , the expected average return are positively correlated.
Answer: 0.89
Explanation: add the 82% and 47% then subtract the 40, answer is 89.
